O2 has become a games shop.

The one-time mobile phone specialist said today it will allow its subscribers to upgrade to an Xbox 360 and Kinect add-on instead of a new phone.

Pay-monthly customers can take the Xbox upgrade if they cough up £190. That nets them a 250GB console, Kinect and a choice of either Dance Central, Kinect Sports or a one-year Xbox Live subscription.

Or they can pay £390 and get the gaming bundle with no need to extend their phone contract or anything.

Not an Xbox fan? Then take out a further two-year, £35-a-month contract on your phone and O2 will hive you a 320GB PS3 with the PlayStation Move Starter Kit add-on.

The Xbox Kinect package is available from 40 of O2's high-street shops. ®